The average Canadian pays $180–$360/year in bank fees. KOHO eliminates monthly fees entirely with a free chequing account that actually pays you cashback.
Open a free KOHO account — no monthly fees, no minimum balance, no credit check
Open KOHO Free Account →Bank fees in Canada are among the highest in the developed world. While Australians and Europeans pay little to nothing for everyday banking, most Canadians hand hundreds of dollars per year to their bank for the privilege of accessing their own money.
A household with two adults, both paying $15/month in bank fees, spends $360/year on fees alone — before any NSF charges, wire transfer fees, or safety deposit box costs. Over a 10-year period, that's $3,600 paid directly to your bank for basic account maintenance.
The most frustrating part? Most Canadians don't realize they're paying these fees. Monthly charges quietly debit the account, often buried in fee-laden statements that banks don't make easy to read.
Here's what the five largest Canadian banks charge for their everyday chequing accounts in 2025, compared to KOHO's free plan:
Canada's banking sector is an oligopoly — six banks dominate roughly 90% of personal banking. The Big 5 (RBC, TD, BMO, Scotiabank, CIBC) operate thousands of physical branches across the country, maintaining enormous real estate and staff overhead that gets baked directly into your monthly fee.
Historically, Canadians had no choice but to accept these fees. Switching banks was complicated, and the alternatives (credit unions, small banks) offered limited features and convenience. The Big 5 knew customers wouldn't leave over a $15 fee, so fees gradually crept higher each decade.
The fintech revolution changed this equation. Companies like KOHO, Wealthsimple Cash, and Simplii Financial built digital-first banking experiences with minimal overhead. No branches, no tellers, no mailing paper statements — those savings get passed directly to customers in the form of zero monthly fees.
KOHO in particular built a sustainable business model around interchange revenue (banks earn a fraction of a percent every time you use a Visa card) and optional premium plans. This lets the base account stay free indefinitely without relying on fee income.
While everyone benefits from paying $0 instead of $15/month, certain Canadians stand to gain the most from switching to free banking:
Most banks offer student accounts with waived fees — but only until graduation, when monthly fees suddenly kick in. KOHO has no age restrictions and no "graduation penalty." The account is free permanently, not just during school.
Newcomers often lack Canadian credit history, which can complicate opening traditional bank accounts. KOHO requires no credit check, accepts international government IDs, and can be opened within days of arriving in Canada. It's one of the most accessible first banking options for new Canadians.
For someone earning minimum wage, a $15/month bank fee represents a meaningful percentage of take-home pay. Free banking removes this regressive cost entirely. KOHO's prepaid structure also eliminates NSF fees — since you can only spend what you have, there's no $45 penalty for accidental overdrafts.
KOHO's optional Credit Building add-on ($10/month) reports regular payments to Equifax, helping users build a Canadian credit score without taking on credit card debt. This is particularly valuable for newcomers and people rebuilding after credit problems.
A household of two adults switching from Big 5 premium accounts to KOHO saves $360–$720/year in fees — enough for several months of groceries.
KOHO isn't the only free banking option in Canada, but it is the most feature-rich free account available. Here's how the main options compare:
| Account | Monthly Fee | Cashback | E-Transfers | CDIC | Credit Building |
|---|---|---|---|---|---|
| KOHO (Free) | $0 | Yes | Free & instant | Yes | Add-on $10/mo |
| Simplii Financial | $0 | No | Free | Yes (CIBC) | No |
| Tangerine | $0 | Limited | Free | Yes (Scotiabank) | No |
| EQ Bank (Everyday) | $0 | No | Free | Yes | No |
| Wealthsimple Cash | $0 | Some | Free | CIPF only | No |
| RBC Advantage Banking | $11.95 | No | $1.50 | Yes | No |
| TD Everyday Chequing | $10.95 | No | $1.50 | Yes | No |
KOHO stands out as the only free account that combines no monthly fee, cashback rewards, CDIC-eligible deposits, and an optional credit-building feature in one product.
Switching your everyday banking from a Big 5 account to KOHO is simpler than most people expect. The process takes about 30 minutes total:
Step 1: Open your KOHO account. Use referral code 45ET55JSYA to get your welcome bonus. Identity verification takes 2–5 minutes with a smartphone.
Step 2: Add your KOHO account number to your employer's direct deposit form. KOHO provides full routing and account numbers for direct deposit setup, just like any bank account.
Step 3: Update automatic payments. Make a list of any pre-authorized debits coming from your old account (phone bill, streaming services, gym membership) and update them to KOHO. Allow one billing cycle for each to switch over.
Step 4: Keep your old account open briefly. Leave your old account open for 60–90 days with a small balance to catch any payments you missed updating. After that, close it and stop paying fees.
Open a free KOHO account — no monthly fees, no minimum balance, no credit check
Open KOHO Free Account →Disclosure: Bremo.io is an independent financial content publisher. We may earn a referral commission if you sign up using links on this page. This does not affect our editorial content or the bonus you receive. Bank fee data sourced from current 2025 published fee schedules. Always verify terms on each institution's official website.